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Question 18 of 40

Q.(a) Nivetha Ltd. forfeited 1000 equity shares of ₹ 10 each for non payment of call of ₹ 4 per share. Of these, 800 shares were re-issued @ ₹ 7 per share. Pass journal entries for forfeiture and re-issue.

(OR)
(b) Mention the commonly used voucher types in Tally.ERP 9.
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2020Subjective· 5mImportance★★★★★
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(a) On forfeiture the Rs. 6 already paid on 1,000 shares is credited to Forfeited Shares A/c; on reissuing 800 shares at Rs. 7, the Rs. 3 discount is absorbed and the net gain Rs. 2,400 is transferred to Capital Reserve. (b) The common Tally.ERP 9 voucher types are Contra, Payment, Receipt, Journal, Sales, Purchase, Debit Note and Credit Note.

PART (a) - Nivetha Ltd.: Forfeiture and Re-issue

Face value Rs. 10; call unpaid Rs. 4, so amount already paid = Rs. 6 per share. 1,000 shares forfeited; 800 reissued @ Rs. 7 as fully paid.

Journal Entries

ParticularsL.F.Dr (Rs.)Cr (Rs.)
Equity Share Capital A/c Dr (1,000 x 10)10,000
  To Forfeited Shares A/c (1,000 x 6)6,000
  To Equity Share First & Final Call A/c (1,000 x 4)4,000
(1,000 shares forfeited for non-payment of Rs. 4 call)
Bank A/c Dr (800 x 7)5,600
Forfeited Shares A/c Dr (800 x 3 discount)2,400
  To Equity Share Capital A/c (800 x 10)8,000
(800 forfeited shares reissued @ Rs. 7 as fully paid)
Forfeited Shares A/c Dr2,400
  To Capital Reserve A/c2,400
(Profit on reissue of 800 shares transferred to capital reserve)

Working - profit on reissue: Forfeited money on 800 reissued shares = 800 x 6 = 4,800. Less discount allowed on reissue = 800 x 3 = 2,400. Profit transferred to Capital Reserve = 4,800 - 2,400 = 2,400. The forfeited amount on the 200 shares not yet reissued (200 x 6 = 1,200) remains in the Forfeited Shares A/c.

PART (b) - Commonly used voucher types in Tally.ERP 9

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